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Growth of home prices slows in Nov

Updated: 2013-12-03 09:27
By Hu Yuanyuan ( China Daily)

China's home prices rose further in November, but the growth rate is slowing down as more local governments are rolling out tightening measures.

Average home prices in 100 major cities monitored by the China Index Academy rose 0.68 percent month-on-month to 10,758 yuan ($1,707) per square meter, the 18th consecutive increase since June 2012.

The growth rate, however, was down 0.56 percentage point and hit the lowest level this year, the academy said.

On an annual basis, home prices in the 100 cities rose 10.99 percent last month.

Growth of home prices slows in Nov

Home prices in major cities such as Beijing and Shanghai remained robust, however, with the average price standing at 18,748 yuan per sq m, up 1.16 percent compared with October and up 16.56 percent from the same period last year.

The slowing growth pace, experts said, is partly due to additional tightening measures from local governments.

While first-tier cities continued to implement measures to curb price growth, the government of Wuhan, a city in central China, announced in November new moves to limit home purchases, making it the first second-tier city to release such measures in recent months.

Subsequently, other cities, such as Hangzhou, Nanjing, Changsha, Shenyang and Nanchang, also announced measures to control price growth.

Meanwhile, the number of cities seeing price gains of more than 10 percent year-on-year increased to 21 last month from 14 in September, a record high so far this year.

"Local governments are expected to roll out additional tightening measures to temper property sales and price growth in the next 12 months," said Franco Leung, an assistant vice-president and analyst at Moody's Investors Service.

The continuous increase in home prices and the additional measures are pushing more Chinese investors to seek overseas opportunities.

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